Philippines

Manila

MEMBERS:

Department of Trade and Industry

Amidst the disruptions caused by the COVID-19 pandemic, the Philippine startup ecosystem is vibrant and thriving. This year, more than ever, we are leveraging our strength in Fintech to promote the increased use of digital payments and e-commerce as we move forward and adapt to a new normal.

Ecosystem by the Numbers

EARLY-STAGE FUNDING

$102 m

GLOBAL AVG.

$687 m

ECOSYSTEM VALUE

$1.6 bn

GLOBAL AVG.

$28.6 bn

MEDIAN SEED ROUND

$360 k

GLOBAL AVG.

$671 k

MEDIAN SERIES A ROUND

$2.3 m

GLOBAL AVG.

$4.7 m

SOFT. ENGINEER SALARY

$8 k

GLOBAL AVG.

$46 k

Fintech

Fintech companies make up 15 percent of Manila’s startups. The transaction value of the Fintech market in the Philippines reached approximately $10 billion in 2019 and is expected to grow by 24 percent in 2020, taking into account the expected impact of COVID-19. Notable Philippine Fintech startups include Coins.ph, a digital wallet and digital currency exchange, which was acquired for $72 million, and First Circle, an online financing platform for SMEs, which raised $26 million in a Series A round in 2018. In 2019, Paymongo, a modern payment infrastructure, raised $2.7 million in seed funding.

E-commerce

The Philippine E-commerce market is growing at a CAGR of 26.4 percent , one of the fastest growth rates in Southeast Asia. The government has developed the Philippines E-commerce Roadmap 2022 with an aim to improve the overall infrastructure landscape of logistics and e-payments among other initiatives to help boost online business activities. Startup success stories include GoodWork, a service provider hiring platform that closed a $1.6 million seed round in 2020, and online automotive marketplace, AutoDeal, which was acquired for $16.7 million in 2019.

Reasons to Move Your Startup to Manila

COVID-19 Policy

The government announced a “Small Business Wage Subsidy Program” to help businesses retain their employees during the quarantine period by providing wage subsidies of up to $160 per eligible employee for 2 months. A $20 million Enterprise Rehabilitation Financing facility has been established to provide loans to qualified micro and small businesses. Other forms of support include subsidies for startup incubation and acceleration.

Experienced Tech Talent and Young Workforce

The country’s well-established outsourcing industry, built around talent from Philippine universities and strong English-language skills, gives founders an experienced pool of employees to draw from.

Startup support

The Youth Entrepreneurship Act promotes finance and startup skills, while the Philippine Innovation Act and the Innovative Startup Act of the Philippines aim to foster an innovative entrepreneurial culture.